Often Saves Money

Many employers use payroll service providers to process their payroll. The supplier typically charges a flat fee for processing but may charge extra for each direct deposit transaction and live check it issues, plus for courier service. Paying biweekly rather than weekly cuts down on supplier fees, and can amount to a considerable savings depending on the actual steps involved for the payroll at a particular company.

Smaller Paper Trail

The federal government has payroll record-keeping laws that employers must comply with. At the end of each payroll cycle, many employers print and file payroll registers, which lists each employee’s payroll data for the pay period. This includes the basis upon which wages were paid and deductions withheld. Although payroll software can store payroll data for several years, keeping hard copies is essential in many businesses for maintaining a reliable filing system. Paying employees biweekly instead of weekly means less paperwork to file and more storage room.

Simplifies Reconciliation

A weekly payroll requires the employer to go through checks issued every week and balance them against those still outstanding. With a biweekly payroll, fewer live checks are issued, which means fewer checks to track. It can also result in fewer checks being stolen and lost.

Benefits for Employees

A biweekly payroll requires employees without direct deposit to take fewer checks to the bank to cash their checks than a weekly payroll. Payment on a weekly basis means that two of the employee’s weekly paychecks likely equal her biweekly pay. Receiving a larger amount on a biweekly basis enables the employee to pay multiple bills at once and may result in extra left over for savings or other purposes.

Tip

If you plan to switch your business from a weekly to biweekly payroll system, make sure your employees are well-aware of the switch with plenty of advanced notice. Explain the benefits, to the business and to the employees, of the biweekly schedule so that the staff understands the rationale for the change.

Is Direct Deposit Payroll The Right Choice For Your Business?

As a business owner or non-profit director, it’s your responsibility to ensure employees are paid accurately and on time. But with so many provincial and federal regulations dictating the proper handling of deductions, payroll can be confusing, time-consuming, and costly - especially since missing established CRA reporting deadlines can result in penalty charges and interest being levied against your business.

As a non-revenue generating process that can quickly consume a company’s limited resources, it’s easy to understand why so many business leaders choose a convenient, secure, and cost-effective method for reimbursing their employees: direct deposit payroll.

At V.B TECH, we provide a reliable end-to-end Payroll Management service with accurate and timely direct deposits to your employees. For more information about our payroll services, or any of our other back-office solutions, contact us to learn more about how we can help streamline your business processes!